Gencor announced a timetable on Tuesday for the unbundling of its 46% holding in Impala Platinum Holdings Limited (Implats), saying it would put the unbundling proposal to shareholders later this month.
The unbundling programme comes after the mining investment company agreed to pay out R460,5-million to asbestosis sufferers who had blocked the programme until their claims were settled.
Some 7 500 claimants who lived on or worked near asbestos mines controlled by Gencor instituted a joint claim against Gencor along with Cape plc in London. The parties reached a settlement earlier this month.
The settlement of the asbestos case, however, was dependent on the successful completion of the unbundling process, the company said in a statement.
The company would put the unbundling proposal to Gencor shareholders at a general meeting on April 25.
”The Gencor board recommends acceptance as it believes, based on expert advice, that the unbundling will be advantageous to Gencor shareholders.”
Unbundling would result in Gencor shareholders holding Implats shares directly and this should unlock shareholder wealth by eliminating the discount at which Gencor shares trade relative to the value of its investment in Implats.
If the unbundling proposal was approved, Implats share certificates will be posted to Gencor shareholders on 18 June 2003.
”The last day to trade in Gencor shares in order to participate in the unbundling will be 16 May and the record date for participation will be 23 May. From 10 June, Gencor shareholders will be entitled to trade their Implats distribution shares in
anticipation of the receipt of those shares.
”On Monday 19 May, when Gencor shares trade ex-rights to the Implats distribution, Gencor will be transferred from the ‘Resources — Platinum’ sector of the JSE (Securities Exchange) lists to the ‘Financials –Speciality and Other Finance’ sector.”
Gencor shareholders will received just under 8,8 Implats shares for every 100 Gencor shares they hold.
This was based on the assumption that Gencor would distribute all of its 30.6-million Implats shares in the unbundling. The 8,8:100 ratio might be reduced if Gencor was required to sell shares to settle tax liabilities. – Sapa